Multiple Choice Question About Atm!!! -cost Based (1 Viewer)

[summer25]

sorry but this is really annoying me...
in regards to the question on that atm machine and what pricing method they used i'm pretty sure its cost based. I mean cost based pricing = going rate +margin. In this particular case they are charging a specific margin eg $1.50 per customer who is from another bank. My teacher told us when she was tecahing this section that businesses often have multiple pricing methods that they apply to different customers. Also why would it be competitor based? And market based pricing is pricing that doesn't reflect actual COSTS - my dad works at a bank and it costs them time/money to loan ppl money and deal with transactions of people who are NOT customers.

also i was thinking the one on the restaurant who buys fish could be resource not intermediate market. I looked at my text book and resource is where the factors of production eg land, labour etc are sold - specifically under land it said water, trees, oil...- any natural product eg fish it also said businesses in this market buy resources to turn these into prodcuts or services eg buys fish turns it into dinner. Also the intermediate market involves businesses buying goods to resell them again eg the goods bought are FINAL not intermediate products, its called the intermediate market because the businesses buying the products act as the go between the manufacturer and the consumer eg think of woolworths buying coke then selling it to us. a restaurant is not going to buy raw fish then give it to consumers - it is not a final product.
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[Bigdaily]

The restaurant processes the fish again, and the fish themselves are already processed (scaled etc) therefore it should be intermediate.

I agree with you about the cost-based question though, but most of my friends put competition based, and they're smarter than me so... =/

 

[snowbunny]

atm question... i also put cost based but i think it could be market based since they can charge for it because its demanded

market question... its intermediate i think.. they said the fish were already scaled and washed or something.. meaning they had already been in the resource market

 

[summer25]

yeh i agree with the intermediate one now but i still think the atm one is cost based. I can't believe i made so many stupid mistakes!!! i got 99.5 for my trials there is NO way i'll be getting anywhere near that now - and it was such an easy test, well those were my initial thoughts...

 

[nataliie]

for the atm question. i put cost-based pricing. isn't market-based pricing like demand and supply of a product? the banks keep the transaction fee at the same price even if demand is low or high.

anyway don't get too stressed about it. it's only 1 mark! =)

 

[wdoueihi]

atm question... i also put cost based but i think it could be market based since they can charge for it because its demanded

market question... its intermediate i think.. they said the fish were already scaled and washed or something.. meaning they had already been in the resource market

i agree with this dude. in order for it to be cost-based there must be a little increase on top of the cost. it doesn't specifically specify that in this question. competion based pricing is where the price is based around the competitors prices. does the question tell us that the price is a specific amount higher than the competitors??? therefore i would have to say it would be market based as it is based on suply and demand. (charges a fee to customers of another bank for using its services). its a trick question. originally i put competion based. then i crossed it out and put cost based. then i crossed it out again and put market based. fuck some of the multiple choice were hard.

 

[kerfuffle]

O.O I put competition based for the ATM question. I interpreted as 'Since you're not a customer of ours, we're going to eat $2.50 from your account'.
But looking at my textbook, my answer seems wrong. Cost-based looks more correct . . .

 

[broady]

How can it possibly be cost-based?

That implies that it costs the bank more to withdrawl money from another bank's account.

 

[1qaz2wsxokm]

it is competition based!

 

[astrobunny]

id say it was competition, because they price it such that they attract customers to go to their bank instead of using another bank's card on their atm... i think >.<